TVS Holdings (520056) Q4 99/00 earnings summary

Executive summary

• FY00 sales and other income reached ₹24,638.57 lakh; profit after tax rose to ₹2,266.92 lakh from ₹1,582.83 lakh.

• Brakes and foundry operations expanded, supported by stronger commercial vehicle demand, higher foundry volumes and shop-floor efficiency initiatives.

Financial highlights

• Sales ₹23,182.98 lakh vs ₹15,999.94 lakh; other income ₹1,455.59 lakh vs ₹1,318.47 lakh.

• Profit before tax ₹3,033.92 lakh vs ₹2,107.83 lakh; provision for tax ₹767 lakh; profit after tax ₹2,266.92 lakh vs ₹1,582.83 lakh.

• Gross profit before interest, depreciation and tax ₹3,893.22 lakh; depreciation ₹799.23 lakh; net interest ₹60.07 lakh.

• Net cash from operating activities was ₹884.76 lakh; investing activities used ₹2,313.84 lakh, and cash and bank balances ended at ₹177.49 lakh.

Outlook and guidance

• FY01 Q1 commercial vehicle sales declined 6% YoY; management expected no growth in the segment for FY01.

• Foundry division targeted sales of 8,500 tonnes in FY01; TPM was to be extended across shop-floor machines.

• Brakes targeted QS 9000 accreditation in FY01 Q2; foundry had been recommended for QS 9000, while both divisions targeted ISO 14000 by March 2001.